S&P 500
The S&P 500 initially fell during the day on Thursday, but turned right back around to form a hammer. The hammer is the same as we saq on Tuesday and Wednesday, so it's more than likely the buyers will come back into the market. If we pullback from here, it’s more than likely that it will be perceived that the market is offering value, and with that being the case more and more people will be attracted to this market. If we can break above the 2110 level, the market should continue to go higher on a “buy-and-hold” type of situation. The 50 day moving average below should continue to be supportive as well.
NASDAQ 100
Obviously, with the Nonfarm Payroll Numbers coming out during the day today, there will be quite a bit of volatility. With this being the case, it’s likely that the market will be difficult to deal with, but the fact that we continue to form supportive candles suggests that buyers are more than likely are going to continue to push given enough time. Pullbacks, should offer value that people will take advantage of. I have the 100 day exponential moving average market on this chart, which was previously resistance, should now offer support. Quite frankly, I believe that eventually we will break above the 4600 level, which would signal a longer-term “buy-and-hold” type of situation just as we could very well have in the S&P 500.
Due to the recent impulsive move higher, I have a hard time shorting this market under most circumstances, so I would have to see an extraordinarily bearish candle on the daily close to make me do so. This is more than likely a market that will continue to bring in more and more buyers.
